§ 518A.35 — Annual tax

Iowa § 518A.35

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 518A: STATE MUTUAL INSURANCE ASSOCIATIONS

Text

1. A state mutual insurance association doing business under this chapter shall on or
before the first day of March, each year, pay to the director of revenue, or a depository
designated by the director, a sum equivalent to the applicable percent of the gross receipts
from premiums and fees for business done within the state, including all insurance upon
property situated in the state without including or deducting any amounts received or paid
9 STATE MUTUAL INSURANCE ASSOCIATIONS, §518A.40
for reinsurance. However, a company reinsuring windstorm or hail risks written by county
mutual insurance associations is required to pay the applicable percent tax on the gross
amount of reinsurance premiums written upon such risks, but after deducting the amount
returned upon canceled policies and rejected applications covering property situated within
the state, and dividends returned to policyholders on property situated within the state. For
purposes of this section, “applicable percent” means the same as specified in section 432.1,
subsection 4.
2. Except as provided in subsection 3, the premium tax shall be paid on or before March
1 of the year following the calendar year for which the tax is due. The commissioner of
insurance may suspend the certificate of authority of a state mutual insurance association
that fails to pay its premium tax on or before the due date.
3. a. Each state mutual insurance association transacting business in this state whose
Iowa premium tax liability for the preceding calendar year was one thousand dollars or more
shall remit on or before June 1, on a prepayment basis, an amount equal to one-half of the
premium tax liability for the preceding calendar year.
b. In addition to the prepayment amount in paragraph “a”, each association shall remit
on or before August 15, on a prepayment basis, an additional amount equal to the following
percent of the premium tax liability for the preceding calendar year as follows:
(1) For prepayment in the 2003 and 2004 calendar years, eleven percent.
(2) For prepayment in the 2005 calendar year, twenty-six percent.
(3) For prepayment in the 2006 and subsequent calendar years, fifty percent.
c. The sums prepaid by a state mutual insurance association under this subsection shall
be allowed as credits against its premium tax liability for the calendar year during which
the payments are made. If a prepayment made under this subsection exceeds the annual
premium tax liability, the excess shall be allowed as a credit against subsequent prepayment
or tax liabilities. The commissioner of insurance may suspend the certificate of authority of
an association that fails to make a prepayment on or before the due date.

Legislative History

[C24, 27, 31, 35, 39, §9060; C46, 50, 54, 58, 62, §518.35; C66, 71, 73, 75, 77, 79, 81, §518A.35]